Registered number
04812637
Adhesive Backed Materials Ltd
Filleted Accounts
31 August 2017
Adhesive Backed Materials Ltd
Registered number: 04812637
Balance Sheet
as at 31 August 2017
Notes 2017 2016
£ £
Fixed assets
Tangible assets 3 26,690 31,540
Current assets
Stocks 69,831 77,537
Debtors 4 75,942 80,463
Cash at bank and in hand 158 25
145,931 158,025
Creditors: amounts falling due within one year 5 (80,931) (97,532)
Net current assets 65,000 60,493
Total assets less current liabilities 91,690 92,033
Creditors: amounts falling due after more than one year 6 (39,939) (47,923)
Provisions for liabilities (662) (2,400)
Net assets 51,089 41,710
Capital and reserves
Called up share capital 1,000 1,000
Profit and loss account 50,089 40,710
Shareholders' funds 51,089 41,710
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr Gareth Bowden
Director
Approved by the board on 1 May 2018
Adhesive Backed Materials Ltd
Notes to the Accounts
for the year ended 31 August 2017
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery 25% reducing balance
Fixtures and Fittings 25% reducing balance
Computer equipment 25% reducing balance
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2017 2016
Number Number
Average number of persons employed by the company 8 8
3 Tangible fixed assets
Fixtures, fittings and computer equipment Plant and machinery etc Total
£ £ £
Cost
At 1 September 2016 24,974 127,444 152,418
Additions 4,107 - 4,107
Disposals (107) - (107)
At 31 August 2017 28,974 127,444 156,418
Depreciation
At 1 September 2016 16,570 104,308 120,878
Charge for the year 3,113 5,784 8,897
On disposals (47) - (47)
At 31 August 2017 19,636 110,092 129,728
Net book value
At 31 August 2017 9,338 17,352 26,690
At 31 August 2016 8,404 23,136 31,540
4 Debtors 2017 2016
£ £
Trade debtors 71,702 78,072
Other debtors 4,240 2,391
75,942 80,463
5 Creditors: amounts falling due within one year 2017 2016
£ £
Bank loans and overdrafts 12,144 29,894
Obligations under finance lease and hire purchase contracts 2,229 3,998
Trade creditors 44,449 37,401
Directors' current account 192 4,104
Taxation and social security costs 17,559 18,893
Other creditors 4,358 3,242
80,931 97,532
The bank overdraft facility is secured by a Fixed and Floating Charge over the company assets and by a personal guarantee by company director Gareth Bowden. The Funding Circle loan is secured by a personal guaranteed by company director Gareth Bowden.
6 Creditors: amounts falling due after one year 2017 2016
£ £
Bank loans 8,399 12,428
Obligations under finance lease and hire purchase contracts - 2,229
Loan from Family Member 31,540 33,266
39,939 47,923
The family loan is a loan from Mr Cyril Bowden who is the father of company director, Gareth Bowden. It is a long term loan without any terms and conditions.
The loan has been used to fund new machinery, the move to large premises including the related moving costs and advertising to achieve a strong position with a view towards long term rather than short term profitability. During the year repayments totalling £1,726.16 were made to Mr Cyril Bowden.
7 Related party transactions
Jade Bowden
Jade Bowden is the Wife of company director Gareth Bowden.
During the year wages and pension costs totalling £1,975.45 (2016: £5,369.92) were incurred in relation to Jade Bowden as an employee of Adhesive Backed Materials Ltd.
Cyril Bowden
Cyril Bowden is the Father of company director Gareth Bowden.
During the year wages costs totalling £8,646 were incurred in relation to Cyril Bowden as an employee of Adhesive Backed Materials Ltd.
Ethan Bowden
Ethan Bowden is the Son of company director Gareth Bowden.
During the year wages costs totalling £891.00 were incurred in relation to Ethan Bowden as an employee of Adhesive Backed Materials Ltd.
8 Transactions with directors
During the year all directors used a current account with the company to record amounts due to them and amounts drawn by them. The amounts are repayable on demand and do not carry interest.

As at 31st August 2017 director, Gareth Bowden's account was overdrawn by £502.66. As at 31st August 2016 the accounts showed an amount of £3,995.77 owing back to Gareth Bowden as a director.

The accounts show an amount owing back to Paul Stevens as a director as at 31st August 2017 of £192.00 (2016: £108.00).
9 Controlling party
Mr Gareth Bowden holds 66.6% of the share capital of the company. As Mr Gareth Bowden works full time in the business and controls the daily running of the company, he is actually the company's ultimate controlling party.
10 Other information
Adhesive Backed Materials Ltd is a private company limited by shares and incorporated in England and Wales. Its registered office is:
Crown Business Park
Tredegar
Gwent
NP22 4EF
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